4. (10’) Returns Calculation 1). An analyst observes the fol…
4. (10’) Returns Calculation 1). An analyst observes the following annual rates of return for a hedge fund: Year Return (%) 2020 8 2021 -9 2022 5 2023 12 What is the hedge fund’s annual arithmetic return? What is the hedge fund’s annual geometric mean return? 2). An investor buys a share of stock for $50 at time t=0, buys other two shares of the same stock for $55 at t=1, and sells these three shares for $60 each at t=2. The stock paid a dividend of $1 per share at t=1 and at t=2. Calculate the periodic money-weighted rate of return on the investment.